No. of Recommendations: 1

You wrote, As for transferring the debt to your mom for a month. First off, it can take 3-4 months for your FICO score to adjust to credit activity. Secondly, and I may be the only one with this train of thought, but is it ethical? In my opinion, credit scores reflect our spending habits and responsibility with credit. It also protects the bank, who use the scores to determine what the risk will be in granting us a loan.

I don't see this as an ethical dilima. It sounds to me that in fact, Brett has a financial resource that's not accounted in his FICO source -- his mom.

If his mom is willing to loan him the money at a better rate, what's the harm? Brett's FICO score probably suggests to his lenders that they can get him for whatever they're currently charging. But if he has cheaper, alternative financing through his mom, they're wrong. His mom represents an inequity or imbalance in the system and I think Brett has every right to use this to his advantage.

Once Brett transfers his balance to his mother's credit card, his FICO score will improve and he should get better offers he can use to pay off his balance with his mom. That effectively restores the balance.

The FICO score is hardly infalible. Most importantly, it doesn't take into account our tangible financial resources -- yet, it will downgrade us based on intangibles, like the length of our credit history or the ratio of outstanding debt to available credit. Are these really fair measures?

If I was a millionaire and I had a poor FICO score just because I didn't have any open lines of credit, would it be fair for me to shuffle funds through various accounts to try to bring my FICO score up? I think it's much the same thing when a young adult has no credit history; but has a parent willing to offer financial support.

- Joel
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